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How to obtain Tanzania Investment Centre (TIC) Certificate of Incentives

How to obtain Tanzania Investment Centre (TIC) Certificate of Incentives

Introduction

The Tanzania Investment Centre promotes and facilitates investment in Tanzania, TIC grants Certificates of Incentives under authority conferred upon it by Part III, Section 17 (1-8) of Tanzania Investment Act, 1997, where by Holders of certificate of incentives are entitled to various investment incentives as stipulated in the Investment Act, 1997.

For local and foreign investors, to obtain TIC Certificate of Incentives minimum capital required for Normal investors with New, Rehabilitation and Expansion of investment should be at least USD 100,000 for investments, which are wholly owned by Tanzanian Citizen (s), and USD 500,000 for investments, which are wholly owned by foreign investors, or if a joint venture.

For Strategic Investors minimum capital required should be at least USD 50,000,000 for foreign investors and USD 20,000,000 for Local investors.

Strategic investment should have the following criteria: The amount of capital to be invested (normally above US$ 50 million), Contribution of the project in terms of creating employment opportunities, New and innovative technology to be introduced by the Prospective strategic investment project, Investment is in the Special Economic Zone or Geographically disadvantaged regions and Extent to which the Project brings capacity to manufacture products for export and the earning of foreign exchange.

For Special Strategic Investors minimum capital should be at least USD 300,000,000.

Requirements

Issuance of Certificate of incentives is guided by the section 17(1-8) of Tanzania Investment Act, 1997. TIC will require the following basic documents in order to process your application:

  • Project’s Business Plan/Feasibility Study
  • A dully filled TIC application forms which are issued by the Centre at a fee of USD 100
  • In case of expansion/rehabilitation, a copy of audited account for the past three years.
  • A copy of the company’s Memorandum and Articles of Association.
  • A certified copy of the Certificate of company Incorporation
  • Evidence of sufficient finance capital available to implement the project
  • Evidence of land ownership for the location of the project (depending on the project, certified lease agreement of minimum of 3 years or certified copy of title deed).
  • Company Board Resolution to register the project with TIC.
  • An overall covering letter to which all the above are attached.

 

The Fee for TIC Certificate of Incentives is USD 1,100

Advantages

  • Automatic permit of employing 5 foreign nationals on the project holding Certificates of Incentives
  • The right to repatriate 100% of foreign exchange earned, profits and capital
  • The Import Duty Exemption on Deemed Capital Goods is 75%. The Deemed Capital Goods are Goods such as Building materials, Utility Vehicles, Equipment etc
  • Twenty five percent (25%) – Import Duty for final consumer goods.

Other Fiscal Incentives

  • Zero-rated VAT on exports
  • 100% capital expenditure to Agricultural sectors.
  • EAC Customs Management Act provides; Hotel Equipment (Import Duty – 0%)
  • Introduction of pay and refund scheme for excise duty paid on fuel purchased by eligible companies.
  • Import Duty drawback on raw materials used to produce goods for exports and deemed exports. Deemed exports cover locally produced or manufactured goods, which are sold to foreign agencies or entities operating in Tanzania, which are exempt from payment of import duties.
  • VAT Deferment granted on project capital Goods such as Plant & Machinery. However, the person has to carry on an economic activity, keeps proper VAT records and file returns, has no Tax outstanding and VAT payable in respect of each unit of the Capital goods is twenty million Shillings or above.
  • The Income Tax Laws allows 50% Capital allowances in the first year of use for Plant and Machinery used in manufacturing processes and fixed in a factory, fish farming
  • Zero percent (0%) Import Duty on Project Capital Goods, Computers and Computer Accessories, Raw Materials and Replacement Parts for Agriculture, Animal Husbandry and Fishing, Human and Livestock Pharmaceuticals and Medicaments, Motor Vehicle in Completely Knocked Down (CKD) form and inputs for Manufacturing Pharmaceutical Products.
  • Ten percent (10%) – Import Duty for Semi-processed/semi finished goods).

Reach us out through info@auditaxinternational.co.tz for Investor Services in Tanzania

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